Finance question and answers for October 05, 2023
- Q Rentz Corporation is investigating the optimal level of currentassets for the coming year. Management expects sales to increase toapproximately $3 million as a result of an asset expansionpresently being undertaken....
- Q Rogot Instruments makes fine violins and cellos. It has ?$1.9million in debt? outstanding, equity valued at ?$2.2 million andpays corporate income tax at rate 35 % . Its cost of...
- Q Suppose there are two one-year assets. You cannot buy afractional portion of either asset. Asset A costs $100 to buy andin one year pays a total of either $120 or...
- Q Suppose there are no taxes. Firm ABC has no? debt, and firm XYZhas debt of $4,000 on which it pays interest of 10% each year. Bothcompanies have identical projects that...
- Q Firms HL and LL are identical except for their financialleverage ratios and the interest rates they pay on debt. Each has$17 million in invested capital, has $3.4 million of EBIT,...
- Q The Warren Watch Company sells watches for $21, fixed costs are$165,000, and variable costs are $11 per watch.lowerhigherWhat is the firm's gain or loss at sales of 9,000 watches?Enter loss...
- Q John is a middle aged executive for a small company. They treathim well, but, unfortunately, cannot pay what he believes he isworth. Recently, he applied to a large international corporationfor...
- Q You are the financial manager of the Crossrail 1 project inLondon. The Board overseeing the project, acting on behalf of theUK Government, has asked you to provide a financial analysis...
- Q You have $9,000 to invest. You've done some security analysisand generated the following data for three stocks and Treasurybills, including weights in the optimal risky portfolio (ORP) fromdoing Markowitz portfolio...
- Q The December 31, 2019, balance sheet for Baird Corporation ispresented here. These are the only accounts on Baird’s balancesheet. Amounts indicated by question marks (?) can be calculatedusing the following...
- Q (Weighted average cost of capital—weights) A company has thefollowing right-hand side of its balance sheet:Bonds payable = $250,000Preferred stock (1000 shares) = $100,000Common stock (200,000 shares) = $400,000--------------------------------------------------------------Total Liabilities +...
- Q You have watched the following returns on Crash-n-BurnComputer’s stock over the past five years: 16 percent, –5 percent,19 percent, 13 percent, and 10 percent.a.What was the arithmetic average return on...
- Q Slight challenge question with a twist on the return measurementproblems. If you understand how to set up an equation to solve forthe annualized dollar-weighted return you should be able to...
- Q Businesses need to make a profit. Profit provides capital forexpansion and a return on their investment to the owners of thebusiness. Do businesses also need to generate cash? Can a...
- Q Which of the following sets of Excel entries will correctlysolve this problem: Jim paid $167,000 for an old house to renovate.He spent an average of $1,998 per quarter over the...
- Q Discuss the types of financial institutions involved in thefinancial market and the markets they serve. Be sure to distinguishbetween the primary and secondary markets and the money and capitalmarkets.? Discuss...
- Q 1-A pension fund manager is considering three mutual funds. Thefirst is a stock fund, the second is a long-term government andcorporate bond fund, and the third is a T-bill money...
- Q Prepare NOTES for the following essay question from a past Exam.Discuss the strengths and weaknesses of models which incorporateratios that an analyst could use to predict financial distress
- Q The Woodruff Corporation purchased a piece of equipment threeyears ago for $230,000. It has an asset depreciation range (ADR)midpoint of eight years. The old equipment can be sold for$90,000.A new...
- Q You bought Sumsung stock for $45 on April 1. The stock paid adividend of $2 on July 1, and had a price of $55. It is now Oct. 1,and the...
- Q how do brokerage make their money in investment banking fees andmutual fees
- Q Sunburn Sunscreen has a zero coupon bond issue outstanding witha $21,000 face value that matures in one year. The current marketvalue of the firm’s assets is $22,800. The standard deviation...
- Q how do brokerage firms make money through Trading profits onstocks and Trading profits on bonds
- Q Rentz Corporation is investigating the optimal level of currentassets for the coming year. Management expects sales to increase toapproximately $2 million as a result of an asset expansionpresently being undertaken....
- Q example of an executive summary of a RFP grant proposal
- Q Aproposed corporate bond issue is usually subjected to a creditrisk assessement by credit rating agencies. The results of such anassessement provide a basis for potential investors to makedecisions regarding the...
- Q Let S = $70, r = 4% (continuously compounded), d = 3%, s = 40%,T = 1.5. In this situation, the appropriate values of u and d are1.42463 and 0.71255,...
- Q example of a cover letter to a RFP grant proposal
- Q You just won the initial school of finance lottery! You have won$10,000 today, $20,000 five years from today, and $50,000 ten yearsfrom today. As an alternative, you can receive your...
- Q Unlev Inc., an unlevered firm, has perpetual expected earningsbefore interest and taxes of $6.6 million per year, a tax rate of34.00% and a beta of 1.5. The risk-free rate is...
- Q Private cars is a medium size car manufacturer planning to starta new business of sports cars.As part of Initial investment, the firm needs to purchasemanufacturing equipment worth $ 10 million...
- Q A bank has the following balance sheetASSETSLIABILITIESCash = 3Retail Deposits (stable) = 25Treasury Bonds (>1 year) = 5Retail Deposits (less stable) = 15Corporate Bonds Rated A = 4Wholesale Deposits =...
- Q james PLC one of the companies listed on the stock exchangewishes to calculate its updated weighted Average cost of capitalfor use in the investment appraisal process.$'MillionIssued shared capital ($100 shares...
- Q Your firm recently divested some non-core assets and now has asignificant amount of excess cash. Branda Sim, the CEO, isconsidering investing in either Singapore Technologies EngineeringLimited (“STE”) shares or 10-year...
- Q The Computer company is evaluating the replacement of one of itsmachines. The machine was originally purchased ten years ago at acost of $35,000 and has been depreciated to a book...
- Q Question 251 ptsThe United States Department of Labor has ruled that employeeswere economically dependent on the employer to be classified asindependent contractors.TrueFalseQuestion 321 ptsThe process of prioritizing how important an...
- Q Elliot Karlin is a? 35-year-old bank executive who has justinherited a large sum of money. Having spent several years in the?bank's investments? department, he's well aware of the concept ofduration...
- Q Youare the financial analyst fir the firm named Sixties Wine thatdistributes California wine in Italy.Your firm routinely hedges itsexposure to the EUR In the past, the firm has used long...
- Q Phil and Carol eloped (at 59 and 46) to New Mexico and then toldthe kids they were moving there permanently. After 5 years indowntown Albuquerque, Carol made one of her...
- Q Introduction to international finance.Why would one select this concept of International finance forfurther examination?Why is it an important aspect of financial management?Respond to the following two posts,Below are two participant...
- Q Consider the following three bonds:BondCoupon RateMaturity (years)PriceA0%1.0$947.5572B7%1.0$1,014.8980C5%1.5$981.4915Assume that coupons are paid every 6 months and the face values ofall the bonds are $1,000.(a) Determine the spot rate curve. (That is,...
- Q Delta CEO Bastian wondered how he should respond to increasedglobal competition, includingthe threat posed by rapidly expanding Persian Gulf carriers and theEuropean ultra-low cost competi-tors, all of which are makinginroads...
- Q lists five categories of unsuitable investments and discussthem
- Q Titan Mining Corporation has 6.1 million shares of common stockoutstanding, 210,000 shares of 3.4 percent preferred stockoutstanding, and 95,000 bonds with a semiannual coupon rate of 5.1percent outstanding, par value...
- Q 1 .A 5-yr project has an initial requirement of $147,019 for newequipment and $9,851 for net working capital. The fixed assets willbe depreciated to a zero book value over 5...
- Q A company currently pays a dividend of $1.75 per share(D0 = $1.75). It is estimated that the company'sdividend will grow at a rate of 23% per year for the next...
- Q Explain relationship between credit risk and interest risk ofcorporate bonds( discuss in detail)
- Q Describe the difference between a defined benefit pension fundand a defined contribution pension fund. Write 200 words. Pleasewrite in your own words. Thank You!
- Q New-Project Analysis The Campbell Company is considering addinga robotic paint sprayer to its production line. The sprayer's baseprice is $1,030,000, and it would cost another $17,500 to installit. The machine...
- Q Suppose ABC Corporation has an obligation to pay $70,000 and$60,000 at the end of 4 years and 9 years respectively. In order tomeet this obligation, it plans to invest money...
- Q describe efficient market hypothesis and weaknesses ofthe theory? 20 marks question..
- Q Avalon Aviation Products is evaluating a new project.What is the net present value of this project if the discountrate is 12% and the net cash flows are as per the...
- Q Suppose that you have the two projects as below:Project B. Project A Year200. 1,000. 1600. 800. 2800. 600. 31,200. 200. 4Each project has a cost of $ 2,000 and the...
- Q What are the factors that contribute to credit risk of corporatebonds(please explain in detail)
- Q (a) Starting from today, every month you save $200 into a bankaccount which earns interest at annual rate of 3.8%.How much money do you have in the account at the...
- Q Discuss enterprise risk management (ERM) in its most currentform and how it has evolved to assess risk management in today'senvironment.
- Q An 8% coupon bond with 3 years to maturity has a yield of 7%.Assume that coupon is paid semi-annuallyand face value is $1,000.(a) Calculate the price of the bond. (Keep...
- Q Suppose you have $250,000 of loan. The terms of the loan arethat the yearly interest is 6% compounded quarterly. You are tomake equal quarterly payments of suchmagnitude as to repay...
- Q callsputsstrikejulaugoctjulaugoct1652.705.258.102.404.756.751700.803.256.005.757.509.001. Buy one august 165 call contract. Hold it until the optionexpire. Determine the profits and graph the results. Then identifythe breakeven stock price at expiration. What is the maximumpossible...
- Q Morris-Meyer Mining Company must install $1.4 million of newmachinery in its Nevada mine. It can obtain a bank loan for 100% ofthe required amount. Alternatively, a Nevada investment bankingfrom that...
- Q Discuss alternatives available for companies to raise capital.Describe the pros and cons a company must analyze prior to goingpublic.
- Q Assume a primary care clinic has the following in costs:Wages and benefits = $280,000Rent = $10,000 annuallyDepreciation = $24,000Utilities = $3,000Medical supplies = $50,000Administrative supplies = $8,000Visits = 15,000Assume all...
- Q The current stock price of Johnson & Johnson is $62, and thestock does not pay dividends. The instantaneous risk-free rate ofreturn is 3%. The instantaneous standard deviation of J&J'sstock is...
- Q WHen starting a small staffing/recruiting firm decide how manysales (in units) you would make in a year (factoring in alldecisions made so far--target market, competition, etc.).What isyour gross revenue projection...
- Q ?Alexis Company uses979979units of a product per year on a continuous basis. The producthas a fixed cost of?$4242per? order, and its carrying cost is?$44per unit per year. It takes 5...
- Q Mr. John decides to start a small business with the intention toexpand it in the future. He has some capital, but he fears he maylose some of his personal assets...
- Q A7X Corp. just paid a dividend of $1.30 per share. Thedividends are expected to grow at 35 percent for the next 8 yearsand then level off to a growth rate...
- Q Old Southwest Canning Co. has determined that any one of fourmachines can be used in its chili-canning operation. The cost andrevenues of the machines are estimated below, and all machines...
- Q Describe the functions of open and closed end funds andexplain the key differencebetween them. Which of the two represents the more attractiveinvestment?
- Q Hayden Inc. has a number of copiers that were bought fouryears ago for $20,000. Currently maintenance costs $2,000 a year,but the maintenance agreement expires at the end of two years...
- Q Over a five-year period, the quarterly change in the price pershare of common stock for a major oil company ranged from -6% to10%. A financial analyst wants to learn what...
- Q Masters Machine Shop is considering a four-year project toimprove its production efficiency. Buying a new machine press for$988,800 is estimated to result in $329,600 in annual pretax costsavings. The press...
- Q The following returns have been estimated for Security T andSecurity S:ScenarioSecurity TSecurity S120%10%213%-6%315%20%Each scenario is equally likely to occur, and you plan to invest70% in Security T and 30% in...
- Q Evaluate the financial statement data and the financial ratiosfor these two firms and answer the questions. Your answers shouldbe based on the numbers given. Show your work to ensure credit.Compute...
- Q explain the different financial records you would analyze toassess the company’s financial strength
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